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The Firm and Its Environment - Coggle Diagram
The Firm and Its Environment
Business is a basic economic institution
Small business
Large business
Types of business
sole proprietorship
Advantages
Easy to organise
Quickly decisions
owners receive all profits
Disadvantages
Limited
resources
Big chance of fail
limited liability
partnership is an association
of two or more people
Advantages
Easy to organis
Quick decisions
Disadvantages
Liability Is unlimited
limited life
Limited companies
Liable for the amount of capital
they have invested
Advantages
Limited
liability
Corporations
Advantages
Can raise capital very fast
Bonds
Shares
unlimited life
Disadvantages
complex forms must be filed
profits are subject to double taxation
profits in the form of dividends is comparatively small
owners do not directly control the business